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Ten Ways to Celebrate Customer Experience Heroes

In my last post I discussed the importance of creating customer experience heroes to reinforce efforts to make your customer experience great.  This follow-up post gives you ten ways to celebrate those customer experience heroes without promoting them. Just to be clear: Promoting a hero is fine if the situation calls for it.  But often promoting your hero takes her away from the role she loves. Use caution before promoting a hero out of the heroic role!

With that, here are ten ideas: Read more

Create Change Through Customer Experience Heroes

What gets measured may get managed, but what gets celebrated gets repeated.

Improving your customer experience requires you to use every tool at your disposal.  Voice of the Customer research is obviously critical.  Understanding your existing Customer Satisfaction Survey or Net Promoter Scores is also important.  But while they monitor your status, these alone will not create change.  You need to find those bright spots in your organization where your customer is being well-served and promote them as much as possible.  You need to create customer experience heroes.

Customer Experience Hero

Heroes define a company, showing what is important.  When a company celebrates sales, they sell more – but perhaps at the expense of delivery issues.  When it celebrates product management, new products come out quickly – including those without customer demand.  But companies with great customer satisfaction use the Voice of the Customer data to understand their level of customer satisfaction, and then celebrates those who engage customers at a superior level. Read more

Tekserve: A Blueprint for a Great B2B Customer-Inspired Experience

“Our job is to make our customers look good to their bosses.” 

That’s the philosophy of Tekserve, an Apple retailer and IT services provider in New York City, as articulated by Director of Marketing Jazmin Hupp.

Imagine that you are a long-time Apple retailer and supplier, and then Apple builds their flagship store just two miles from you, then four more just as close. Some might find it time to close up shop. Instead, Tekserve used the challenge as an opportunity to refocus on their customers. Their reward? Consistent growth, being featured in the Crain’s New York Business Fast 50 and the Computer Reseller News’ 2012 Solution Provider 500 list, which ranks the top technology integrators in North America.

Tekserve doubled-down on the service surrounding Apple’s products, particularly for businesses.  Almost 2/3 of their revenue comes from B2B relationships, where they are far nimbler than Apple. Much of their work involves integrating Apple products into existing networks, including wholesale conversions from PCs to Macs.

Tekserve credits their growth to three main areas of focus: Read more

The Second Key to Creating a Great Customer-Inspired Experience: Engage the Entire Team on the Opportunity

Once you know what matters, the next step is to get everybody involved.

I have been speaking about this topic quite a bit lately, and one exercise I have is for participants to identify five recent projects or programs their company has developed to improve your customer experience. These could be new products, pricing changes, sales training programs – any new idea. Go ahead and do this, as well. Write down five new projects your company is implementing:

  1. ______________________________
  2. ______________________________
  3. ______________________________
  4. ______________________________
  5. ______________________________

Now that you have this list (you did do the exercise, didn’t you?), let’s look at your projects. Whether you work for a 50 or 50,000-person company, a good rule of thumb is that 90% of your company’s employees are individual contributors. So if your company is doing well at this key, 4-½ of these ideas should come from front-line employees. Brave readers: comment on how well you did!

Of the hundreds of attendees in my talks, how many had at least three ideas come from an individual contributor?

Four.

None came from a company of more than ten people. Only about half had even one idea come from a front-line employee.

We can do better. Companies pay consultants to tell them what to do, when they have dozens (or hundreds or thousands) of passionate employees who know far more about their customers. We need to do cast a wider net. Read more

Great Clips – Driving Organic Growth through Customer Focus

“At every level in the organization, if people don’t understand what’s going on face-to-face with the customer, it doesn’t matter what else you’re doing.”

That’s the advice of Rhoda Olsen, CEO of Great Clips. It’s the same strategy that has driven 30 straight quarters of same-salon revenue growth. But it wasn’t always that way. Back in 2005, “We thought we were a pretty customer-focused organization, as everyone does,” says Olsen. But that year sales and customers dipped for the first time in history. This wake-up call showed Great Clips they needed to better understand the current state of their customer needs.

After conducting significant research, they discovered their brand wasn’t very well-defined and category confusion was significant. Customers had a difficult time distinguishing Great Clips’ value proposition from other salons. Read more the full interview, including an analysis of efforts, in Great Clips – Driving Organic Growth through Customer Focus Interview with CEO Rhoda Olsen.

Service Re-Recovery at Hampton Inn and Barnes & Noble

Service recovery is critical for any business.  Of course, the best time to fix a problem is immediately following its occurrence, but this is not always possible.  How do you handle service recovery after the fact, when complaints come from the web, email, or a call?  Let’s look at two very different examples, each based off of previous posts.

Several weeks ago I discussed running out of hot water at a Hampton Inn. The manager on duty paid for my room, but never gave me a time to vent before doing so, actually frustrating me more than the original problem. After creating the post, my daughter Becca suggested I share it with the hotel.  I did so, although I didn’t expect much to happen. You can imagine my pleasant surprise when I received this email from Peggy Messmer, General Manager of the hotel: Read more

Drivers: the Secrets to Creating a Great Customer Experience

The Heart of the Matter

Typical Customer Experience Measurement Programs treat all customers as one homogenous group, rather than as unique segments. These programs need to analyze customers based on their value to the organization and analyze what drives the behavior of each segment. This white paper lays out a process for developing and analyzing these Customer Experience Drivers.

Introduction

Do you understand what motivates your best customers and sets them apart from the rest? For example, why do some customers:

  • Come to your restaurant every week, whereas others only when they have a coupon?
  • Call you first for consulting help, while others make you bid for the lowest price?
  • Require constant hand-holding, compared to others who are very inexpensive to maintain?

And how do you find more customers like the first group?

Simply said, some customers are engaged with your company, love your products and services, and trust you. These customers tend to be your most loyal and profitable. Others buy from you because you are convenient or have a good price. These are often expensive to serve and contribute less to your business’ bottom line. You need to learn what drives the former, to find more like them.

This is true for both B2B and B2C companies. In fact, because the order sizes are typically much larger, this is even more critical for B2B companies.

Without this understanding, product development and marketing become a best-guess effort. Driver Analysis is the process used to determine what motivates your best customers.  It extends your current NPS, Satisfaction, or Engagement studies to discover and measure these underlying motivations.

Driver Analysis is the practice of including motivations in your Customer Experience Measurement Program, then correlating these motivations with your customers’ Lifetime Value. This process separates those who purchase based on convenience or price from those truly profitable customers who view you differently, and then shows the motivations of each group.

For example, quick service restaurant customers selected the chain they visited the most. Within a restaurant’s most-frequent visitors, those who were “engaged” spent $8 a month more here than the average. What drove this engagement was not “the Quality of Food,” or “Speed of Service.” Instead, it was “the Warmth of the Greeting.” Similarly, Gallup found that B2B customers who rated their partners high on “Impacts my business” are stickier – they remain customers longer, and are more profitable. The specific drivers vary by company – even within an industry – but are critical to understand how to motivate customers to spend more with you.

Another reason to use drivers is to target efforts in your different delivery segments. Using the restaurant example above, imagine the situation where a general manager is told her store NPS or satisfaction score is low. While this is important to know, it does not tell her how to improve these scores. Drivers provide insight on where action is needed.

Similarly, drivers help B2B account teams know where to focus. Satisfaction or NPS helps evaluate the state of the relationship – drivers identify how to improve it.

So, how do you discover these drivers? See Figure 1 for an overview. The process starts with your staff, and then expands to your customers.

White Paper

This post continues in: Drivers – the Secret to a Great Customer Experience White Paper. Please download it to learn the entire end-to-end process!

How Clear Are Your Instructions?

Have you ever eaten a frozen lunch by Michelina’s? These are inexpensive meals for a quick lunch. To heat it, you open the lid and put it in the microwave. After it has run for 2-3 minutes, stir it and put it back in. But for how long? The cooking directions are on the bottom of the box! If you didn’t memorize the timing before you started, you’re now in the position of either guessing the length of time, or holding it above your head so you can read the directions.

How does this happen? Do Michelina’s employees not eat the food? Do they spend so much time with the meals that they have the directions memorized? Or have they made a deliberate decision to sacrifice the functionality in favor of the branding on the top of the box?

This reminds me of the Tropicana rebranding failure from a few years ago.  You can learn more about it here and here.

To summarize, Pepsi (the owner of Tropicana) released new packaging for Tropicana. It looked okay on a carton-by-carton basis. But what about when you saw it in the store? First, it looked like a store brand. Second, all the versions looked nearly identical. Notice how the original clearly says “No Pulp Original.” Color variations differentiated the varieties, making it easy to shop. Now, look at the new version. Pulp free is there – but you have to look for it. It takes more work than the original. In addition, whereas the original had the iconic orange with a straw in it, the new one looks like a store brand! Imagine 7 varieties of the new carton all lined up together. It makes the shopper work harder.

Just to showcase the issue, I’d love to measure how may Tropicana shoppers actually look for the brand name when they pick up their juice.  I’m certain a sizeable minority just look for the orange. But don’t take my word for it – take the consumers’. Sales dropped by 19% before Pepsi reversed the decision!

This is an interesting product branding discussion.

But how can we learn from this in developing our own customer experience?

Let’s examine how the Pepsi decision-makers shop for orange juice. Not the consumers – the people involved with developing the product. Pepsi has a pretty sweet deal for employee purchases. Pepsi provides heavily-discounted beverages for bulk purchase at the headquarters. Why would you ever shop at a grocery store when you could pick it up at work and save yourself a bundle in the process? You wouldn’t.

At first this program seems like a good idea, as it will get employees to drink more of their own products, and they can reinvest that knowledge back into the product development process. From an R&D perspective, that makes a lot of sense.

But this leads to the employees missing the shopping experience. I have no particular insight into the team that decided on the branding. They probably spent a lot of time in stores, and they probably mocked up a store display at headquarters. But did they deliberately put themselves in the customers’ shoes? All signs point to a definite “No.”

Let’s contrast this with Best Buy, where I do have some experience. Best Buy has both an online and a physical store experience. They offer employees a discount to they shop in the stores – but not when they shop online. Why not? Store employees (particularly those near the corporate campus!) would like nothing better than to get those corporate employees out of their stores. So why not send them all online for their purchases?

The answer revolves around customer experience. Best Buy knows that if they offer the discount for online purchases, a substantial number of employees will never go to their stores. As a result, they will never gain that insight that comes from searching through three stores to find that special power cable for their phone. Only by physically walking through the customer’s steps can you gain the insight needed to create a great customer experience. Best Buy knows this. Pepsi didn’t.

What are you doing to make sure that you have a deep understanding of your customer’s experience?

Seeing through your customers’ eyes

It’s not easy to think like a customer. In Made to Stick, the Heath Brothers talk about “The Curse of Knowledge.” We often know so much about a topic that we simply can’t understand the perspective of those who don’t know as much.

This is critical to keep in mind as you develop your customer experience. We get so accustomed to the way things are that it takes a very deliberate effort to step back and see it from a customer’s perspective.  Over-featured phones, sales-prevention processes and convulated forms are constant reminders of what happens when you design the experience from a company-centric eye.

The big challenge

Seeing things through the customer’s eye is clearly critical to developing a successful experience. The challenge is:  how do I do it?  And how do I get the rest of my company to think this way?

Retailers have a fairly easy to watch customers shop. But that doesn’t mean they necessarily do it.  In Why We Buy, Paco Underhill tells a story about working with Macy’s. While they were investigating a different part of the store, their cameras also picked up a tie rack on the race track, and they saw something amazing. Particularly on busy days, customers would browse for ties until somebody walked close behind them and accidentally brushed their backside as they went by – what Underhill called “butt brush.” Once customers (especially women) experienced butt brush they immediately abandoned shopping. Once the problem was spotted, the response was easy. Macy’s moved the tie rack and sales increased immediately!

But how many store associates walked by that tie rack every day? If you take the time, you will realize that there are dozens of ways to improve the customer experience right in front of you. But we’re often so busy running the business that we miss simple opportunities to improve our customer’s lives, and thus our results.

Retailers have no excuse for these types of problems. In the Lund’s example from my earlier post, how much effort does it take to walk a store and look for problems? But how often do we do it? Clearly, not often enough!

Going further

But this opportunity extends far beyond retail. Almost every service business has its own way of going “undercover customer.” While the watching cannot always be literal, customers share their experience in more ways than you might expect. Intuit developed its software by following people home to watch them install it, recording every misstep or issue along the way.  At a healthcare financial services provider we “watched” our customers by matching behavioral data with demographics to get a better understanding of who was opening accounts and how they saved or spent their dollars.  Clickstreams are another example – who is using your website, and how? Where do they come from, and where do they go next?  Use inductive reasoning to look for trends, and use these to improve your customer experience.

Watching customers helps you understand what they actually do, breaking your myths about your customers’ behavior.  Have you watched your customers today?